By the Division of Banks

Retaining Proof Of Mortgage Disclosures

Financial institutions must comply with each applicable law and regulation and review suggested industry record retention practices in order to establish appropriate policies for making mortgage disclosures as required under Mass. Gen. Laws chapter 184 § 17D and 209 CMR 32.00 et seq. Such policies are necessary since such institutions have discretion buy may have to evidence compliance. The Official Staff Commentary to the federal Truth-in-Lending statute found at 12 CFR 226.25(a)(2) states, in part, that creditors need only enough information to reconstruct the required disclosures or other records. While a disclosure receipt is an acceptable form to evidence compliance, it is not required by the Division of Banks. However, any disclosure for which timing is an element of compliance would require additional documentation.